LONDON (ShareCast) - (Sharecast News) - Natural resources company Jangada Mines announced on Thursday that remaining conditions had been satisfied and the agreement to dispose of Pedra Branca Brasil Mineracao - the entity that holds the Pedra Branca Project - to ValOre had completed.
The AIM-traded firm said that as a result, it had formally transferred ownership of Pedra Branca Brasil Mineracao to PBBM Holdings, a wholly owned subsidiary of ValOre, in consideration for the issuance of 22 million ValOre common shares to Jangada and receipt of the first tranche of cash proceeds totalling CAD 0.75m (£0.46m).

Following the issuance of the initial consideration shares, Jangada would have a holding of 26% in ValOre's then-enlarged share capital.

The company said it was also due to receive cash payments of CAD 2m over the next six months, and up to three million ValOre common shares over the next three years.

"Jangada intends to use the majority of the net proceeds of the disposal for the further development of Pitombeiras, which in the near term, would involve further drilling and metallurgical work," the board said in its statement.

"A NI 43-101 compliant competent persons' report is already underway, which is expected to be completed by the company during the third quarter."

Jangada said it estimated that the time required to complete the next stage of development of the Pitombeiras project would be six months from completion, at which time further, informed decisions could be made as to the correct way forward.

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